Residency

1 Were you a resident of Australia for taxation purposes on the date that you signed the contract to sell your home in Australia?

Yes. Question 2 Are you a resident of Australia for taxation purposes from the relevant date? Answer No. Question 3 Are you entitled to a partial main residence exemption on your Australian property? Answer Yes. This ruling applies for the following period : Year ended XX/XX/20XX The scheme commenced on: XX/XX/20XX

You were born in Country A. You migrated to Australia in 19XX and became a citizen of Australia at that time. In 19XX you purchased the Australian property. You rented the Australian property out from 19XX to 20XX. In 20XX you moved into the Australian property and treated it as your main residence up until it was sold on XX/XX/20XX. From 20XX you travelled between Australia and Country B spending about XX of your time in each country. The following are the number of days you were in Australia: •         20XX XX days in Australia •         20XX XX days in Australia •         20XX XX days in Australia •         20XX XX days in Australia •         20XX XX days in Australia •         20XX XX days in Australia You left your Australian property vacant while you were in Country B. You have children in Country B. You purchased in home in Country B in 20XX (the Country B property). You became a permanent resident of Country B in XX/20XX. The Country B property is vacant on your visits to Australia. You went to Country B in XX/20XX. At the time, the pandemic was still ongoing and you were not able to return to Australia with as much flexibility as you did in the past.

You decided to sell the Australian property in 20XX. You signed a contract of sale on XX/XX/20XX with settlement occurring on XX/XX/20XX. It was your intention at the time of entering the contract to purchase another property in Australia. In XX/20XX, you made the decision to move to Country B permanently and not purchase another property in Australia. You arranged for the majority of your savings to be moved from your Australian bank account to your Country B bank account. You moved the majority of your personal affects to Country B. The only personal affects you have remaining in Australia are some clothing which you store at your sibling's house. You have not arranged for your name to be removed from the Australian electoral roll. Since you sold the Australian property, you list your Country B property as your residential address on incoming and outgoing passenger cards when you travel internationally. You have no social or sporting connections in either Australia or Country B. You maintain private health insurance in Australia. You have maintained a bank account with cash in it in Australia. You have no other assets in Australia.

You will stay with your sibling or in a hotel in Sydney when you return to Australia for short visits. You do not have a spouse. You are not eligible to contribute to the PSS or the CSS super fund.

Income Tax Assessment Act 1936 subsection 6(1) Income Tax Assessment Act 1936 section 995-1 Detailed reasoning Section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: •         the resides test (also referred to as the ordinary concepts test) •         the domicile test •         the 183-day test, and •         the Commonwealth superannuation fund test. T